WACC. Grey's Pharmaceuticals has a new project that will require funding of $12.4 million. The company has decided to pursue an all-debt scenario. Grey's has made agreements with four lenders for the needed financing. These lenders will advance the following amounts at the interest rates shown: Click on the Icon D in order to copy its content into a spreadsheet. Lender Amount Interest Rate Steven $4,358,894 14% Yang $3,733,942 11% Shepherd $2,584,692 $1,722,472 9% Bailey 10% What is the weighted average cost of capital for the $12,400,000?
WACC. Grey's Pharmaceuticals has a new project that will require funding of $12.4 million. The company has decided to pursue an all-debt scenario. Grey's has made agreements with four lenders for the needed financing. These lenders will advance the following amounts at the interest rates shown: Click on the Icon D in order to copy its content into a spreadsheet. Lender Amount Interest Rate Steven $4,358,894 14% Yang $3,733,942 11% Shepherd $2,584,692 $1,722,472 9% Bailey 10% What is the weighted average cost of capital for the $12,400,000?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Chapter 11, Question 5
Transcribed Image Text:WACC. Grey's Pharmaceuticals has a new project that will require funding of $12.4 million. The company has decided to pursue an all-debt scenario. Grey's has
made agreements with four lenders for the needed financing. These lenders will advance the following amounts at the interest rates shown:
Click on the lcon
in order to copy its content into a spreadsheet.
Lender
Amount
Interest Rate
Steven
$4,358,894
14%
Yang
$3,733,942
11%
Shepherd
$2,584,692
9%
Bailey
$1,722,472
10%
What is the weighted average cost of capital for the $12,400,000?
What is the weighted average cost of capital for the $12,400,000?
% (Round to two decimal places.)
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